Rupee Steepest Slide Since ‘93 Repels Funds on Prices

“The difference between India and other BRICs is that Russia is a net exporter of oil, while Brazil is the world’s biggest exporter of beef, coffee, orange juice and sugar. China posted a record $262 billion trade surplus in 2007 and has $1.68 trillion of currency reserves.

India imports about 75 percent of its oil, which has almost doubled in price in the past year. The rising cost added to the shortfall in the country’s current account, a broad measure of trade and investment flows. The deficit widened to a record $13.4 billion in 2007.”

Barclays, Deutsche Bank, and Goldman are all looking for 43 or 44 in the rupee. I’m willing to go a little farther out on the Fibonacci projection limb and say 46+ is in the cards.

(Note that the weekly Sequential nailed the low at the beginning of the year.)